Why Buy a Term Life Insurance Policy?

Shawn Plummer

CEO, The Annuity Expert

Why Buy a Term Life Insurance Policy?

Income Replacement and Financial Security Term life insurance is essential for income replacement. It ensures that your family has the financial means to maintain their lifestyle in case of your unexpected demise. This type of insurance is ideal for providing funds to cover expenses and debts, supporting your family’s needs for a certain number of years when you are no longer there to earn an income.

Affordability of Term Life Insurance On average, term life insurance policies are more affordable compared to whole life insurance. This affordability stems from the policy’s nature of providing coverage for a predetermined period, often 10, 15, or 20 years. This temporary nature reduces the cost for the insurer, making premiums lower for the policyholder.

Short-Term Death Benefit Protection Term life insurance offers short-term Death Benefit protection. If you pass away within the term of the policy, your beneficiaries receive a lump-sum death benefit. This feature provides peace of mind, knowing your loved ones will be financially secure during the policy term.

Cost-Effectiveness of Coverage Term life insurance is cost-effective because the coverage is guaranteed only if the insured person dies during the specified term. After the term expires, so does the coverage, which explains the lower premiums compared to whole or permanent life insurance policies.

Expert Guidance in Insurance Buying At the Annuity Expert, we offer experienced guidance through the insurance buying process. Our extensive experience and wide range of carrier options ensure that you find a policy that best suits your needs and budget.

Comparing Term and Whole Life Insurance

FeatureTerm Life InsuranceWhole Life Insurance
DurationFixed periodLifetime coverage
PremiumsLower, fixed for termHigher, fixed for life
Death BenefitOnly if death occurs within termGuaranteed whenever death occurs
Cash ValueNoneAccumulates over time
PurposeIncome replacement & debtsIncome replacement, savings, estate planning


Term life insurance is a practical choice for those seeking affordable, short-term coverage focused on income replacement and financial security. It is especially suitable for individuals needing coverage for a specific period. At the Annuity Expert, our expertise and range of options can help you navigate the complexities of choosing the right insurance policy.

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Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed financial professional, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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